South Korean Universities Face Obstacles in Converting Crypto Donations to Cash
Financial authorities in South Korea are preventing universities from opening corporate accounts for cryptocurrency transactions, which is hindering their ability to convert crypto donations into cash. According to local outlet Chosun Ilbo, financial authorities are concerned about the potential for money laundering with corporate accounts, as they lack individual verification compared to accounts with real names attached.
The Korean Financial Intelligence Unit (KoFIU) and the Ministry of Education are expected to maintain their stance on prohibiting universities from opening corporate accounts for crypto transactions. This decision comes after some universities sought to open such accounts to convert large coin donations they had received.
A senior official from the financial authorities justified the decision by stating that granting universities an exception would be unfair to other businesses. Additionally, allowing corporate accounts for all corporations would pose a significant risk of money laundering.
Financial authorities and the Ministry of Education plan to advise universities to refrain from accepting cryptocurrency donations in the future. However, they may provide a solution for universities that already hold such donations by establishing a system to convert the existing coins into cash, depending on the amount and other factors.
South Korea recently implemented a policy that prohibits charities from accepting digital currencies, despite the growing popularity of Bitcoin (BTC) and other cryptocurrencies in the country.
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